The government will inject the highest ever number of subsidies and incentives in the food, agriculture, power, energy and export-import sectors for FY 2020-21 to cope with the impact of Covid-19 pandemic.
Allocation for payment of subsidies and incentives will be raised by an additional Tk 7,480 crore to Tk 56,051 crore, according to an official at the finance division.
Additionally, the government has increased subsidy for LNG (Liquefied Natural Gas) by 50 percent.
The official said the government will provide the additional subsidy for LNG as it had signed a purchase agreement with Qatar two years ago with a high price. Energy division has estimated a yearly subsidy outlay of Tk 14,000 crore for LNG import, the official also said.
Moreover, Tk 6,166 crore is allocated for food security in the country as the government said the highest priority is given on the issue. Allocation for food security was Tk 4,692 crore in the outgoing fiscal year.
The government will also provide an additional Tk 1,500 crore as an incentive to the agriculture sector, jute industries and remittance in FY 2020-21, according to the budget proposal.
